George Osborne ‘must change course to save 1million jobs in public sector’

More than 1million public sector jobs could be lost over the next four years under current government proposals, it has been claimed.

Spending on police, defence, transport and justice could be cut by a third as the Treasury struggles to balance the books, a think tank reported.

Chancellor George Osborne is set to borrow £64 billion more than he planned by 2015 after pledging to protect the NHS, schools and overseas aid from cuts in a forthcoming spending review.

But Paul Johnson, director of the Institute of Fiscal Studies, said extending the protection would leave other departments struggling with the loss of 1.2million public sector jobs by 2017/18.

By comparison, the Office for Budget Responsibility predicted there would be 900,000 job losses. ‘The effects of concentrating all those cuts on currently unprotected areas of public service spending look hard to contemplate,’ said Mr Johnson.

David Cameron is off to Brussels (Picture: AFP/Getty)

Unions and Labour want the government to change direction. ‘If the government does not change course there could be well over 1million job losses in the public sector and savage cuts to vital services,’ said TUC general secretary Frances O’Grady.